The Aussie dollar has fallen a full cent from where it was this time Monday morning and, at 0.7637, is now down 3 cents from the highs of last week when the US dollar was under pressure.
That’s a huge move in the world of forex traders where exchange rates usually move in tenths of a percentage point not the 1.46% the Aussie has lost in the past 24 hours.
What’s driving the Aussie dollar lower are three things at the moment.
- Iron ore is lower again with June 62% Fe Cfr China Futures hitting a new low for this selloff last night at $51.46. Annette Beacher from TD Securities wrote yesterday afternoon that the last time iron ore was this low the Aussie was at 64 cents. Traders are taking notice.
- The US dollar is on the ascendancy again as strength in the Euro, Yen and others is being reversed once more.
- There was talk in forex markets yesterday that the RBA will be forced to cut at next week’s Board meeting
The multi-year low for the Aussie recently was 0.7557. Traders might just be eyeing a pre-Easter test of support.
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